Athira Sethu
Kochi, 2 March 2026
Shares of shipping companies, including Shipping Corporation of India (SCI), are likely to be in focus on Monday, March 2, as tensions in the Middle East continue to rise. The situation worsened over the weekend after coordinated military strikes by the United States and Israel on Iran. The attacks reportedly led to the death of Iran’s Supreme Leader Ayatollah Ali Khamenei, increasing fears of a wider regional war and creating uncertainty in global markets.
According to reports, the strikes have continued, and Iran has responded with missile attacks across the region. This has raised concerns that more countries in the Middle East could get involved. US President Donald Trump told The Daily Mail that the conflict could continue for up to four more weeks and that military operations would go on until US goals are achieved.
One major area of concern is the Strait of Hormuz, a narrow but very important sea route.
Nearly 20% of the world’s oil trade and a similar share of liquefied natural gas (LNG) supplies pass through this route. Although the strait has not been officially closed, shipping activity has slowed down. Reports show oil tankers gathering on both sides of the waterway due to safety fears and rising insurance costs.
Energy experts say the biggest immediate impact has been the sharp drop in tanker movement through the strait. If oil cannot pass smoothly, global supply may tighten. This could affect around 15 million barrels of crude oil per day, pushing oil prices higher.
Any disruption in the Strait of Hormuz directly affects shipping companies. If ships are delayed or forced to take longer routes, such as sailing around the Cape of Good Hope in Africa, travel time and fuel costs increase. At the same time, insurance premiums for ships operating in conflict zones rise sharply.
Because vessels take longer to complete each trip, the number of available ships reduces. When supply of ships falls and demand remains strong, freight rates increase. Higher freight rates mean shipping companies can earn more for transporting crude oil, LNG, and other goods.
For Indian shipping companies like Shipping Corporation of India and GE Shipping, a rise in freight rates could be positive. If the conflict continues and shipping routes remain risky, these companies may benefit from higher charter earnings in the coming weeks.
